FOMC Minutes: Low Inflation Rates Won’t Delay Rate Hikes

Market Outlook , ,
The minutes of the Fed’s Federal Open Market Committee (FOMC) indicate that Fed policymakers aren’t concerned about low inflation rates as an obstacle to raising the target federal funds rate. The national inflation rate was 1.50 percent for the 13 months ending in October. The inflation rate as reported in the Consumer Price Index (CPI) dropped to 1.25 percent in November. The Core Consumer Price Index, which excludes food and energy sectors, showed an inflation rate of 1.75 percent. The Fed has repeatedly cited a target of 2.00 percent inflation, but inflation rates have remained consistently lower. Recent freefall in…
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What’s Ahead For Mortgage Rates This Week – December 8, 2014

Market Outlook , ,
Last week's economic reports related to housing and mortgages were few, but construction spending, the Fed's Beige Book report, non-farm payrolls and the national unemployment report indicated trends for the end of the year. Construction Spending Increases U.S. construction spending rose by 1.10 percent in October according to the Commerce Department. This reading translates to a seasonally-adjusted annual rate of $971 billion. Analysts had expected an increase of 0.70 percent based on September's original reading of -0.40 percent, but September's reading was revised to -0.10 percent on Tuesday. Private spending on residential projects increased 1.30 percent. Federal Reserve Beige Book…
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What’s Ahead For Mortgage Rates This Week – Sept 8, 2014

Market Outlook , ,
Last week's housing-related economic news was slim, likely due to the Labor Day holiday Monday. On Tuesday, the U.S. Commerce Department reported that construction spending for July increased by 1.80 percent as compared to June's revised reading of 1.0 percent and expectations of a 1.0 percent increase for July. The Federal Reserve released its Beige Book report Wednesday; the collection of anecdotes from business contacts within the 12 Federal Reserve districts indicated that the general economy was strengthening as well as labor markets. The Fed noted a shortage of skilled workers. New construction and home sales grew modestly, but the…
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